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Former Filipino Chamber of Commerce President Stephen Callo pleaded guilty in U.S. District Court on Thursday to wire fraud for lying about his income to secure a $553,501 loan to buy a Makakilo home in 2006.
In exchange for the guilty plea, the federal prosecutor promised to drop 13 other charges against Callo for his alleged participation in the largest mortgage fraud scheme uncovered in Hawaii.
Those charges allege that Callo, a certified public accountant, prepared and signed letters containing false information about the employment histories of loan applicants and signed another fraudulent loan application.
Callo is among 14 people named in two August 2010 indictments charging them with conspiracy, wire fraud and making false statements on loan applications involving 46 residential properties on Oahu.
The government says the 14 people, as well as 10 others charged separately, bought, refinanced, sold and resold more than 90 properties on Oahu from 2003 to 2008 using false information on loan applications to defraud subprime mortgage lenders out of millions of dollars.
All but one of the 24 defendants, including Callo and alleged mastermind Estrellita "Esther" Garo Miguel, have pleaded guilty and are awaiting sentencing. The last defendant, Lene Tanuvasa Jr., who was charged in the group of 14, is scheduled to stand trial in May.
Callo faces a maximum 20-year prison term for wire fraud at his sentencing in April.
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